Solvari is Transforming the Solar Industry
The experiment has been done and the data is in. The cost of residential solar will not decrease unless we revamp our products and change the way we bring them to market. System complexity is the problem, and Solvari SR is the cure.
Residential Solar is Plagued by Soft Costs
The cost of residential solar has increased over the years while other solar segments have either seen no change or modest decreases. Historically low solar panel (PV Module) costs have been offset by increases in other residential solar components netting a marginal cost savings.
Unfortunately, for the residential market, the solar panel costs savings have not kept up with increases in labor and “soft costs” . Non-residential segments utilize economies of scale and simplified products to limit labor and soft costs. On the other hand, residential solar is discrete by nature, and thus has not been able to benefit from economies of scale. To make matters worse, the complexity of residential solar products contributes significantly to labor and operational inefficiencies that impact the soft costs.
Equipment Cost are Not the Problem
Several years ago, when contemplating ways to reduce the cost of residential solar, the founder of Solvari concluded that material cost reductions were not going to result in lower prices to the homeowner. In fact, the chart above, highlights this point.
While PV module costs have decreased by 50% over the last 9 years, the cost of residential solar has increasing by more than 8%. Its clear, reduced equipment costs doesn’t solve the problem of high system costs.
Solvari Eliminates Soft Cost and Inefficiencies
Solvari’s all-in-one solar panel is the first residential solar technology to tackle soft costs head on. Solvari simplifies the rooftop solar array from 450+ parts to a single installable unit, This extreme simplification eliminates many of the product driven operational complexities that plague solar installers and drive-up soft costs. Solvari eliminates sourcing, parts management, system design, engineering, warehousing, and training to lower headcount and streamlining operations.
In addition, since Solvari solar panels are factory assembled, they take full advantage of economies of scale afforded by standardization and automation. Solvari solar panels create a copy-exact solar array that is fast, repeatable, and highly reliable no matter the shape of the roof or the training of the installation crew.
Solar installers who standardize on Solvari can realize three times their yearly revenue while significantly reducing their operational expenses. This titanic shift in operations will allow solar installers to be more competitive which will drive down costs to homeowners.
Solvari Opens New Market Segments to Grow Adoption
Solvari’s simplicity eliminates the $500k startup costs typically required to start a solar contractor business. By eliminating the learning curve and asset requirements, Solvari makes solar accessible to nearly everyone. This is why Solvari is so popular with traditional trades such as roofers, electricians, home contractor, and home builders.
One advantage these companies have is access to their existing customer base to which they are already providing other home improvement services. This makes selling solar much more efficient than it is for solar contractors who incur exorbitant customer acquisition costs that can be as high as 30% of the cost of the solar system.
In addition, traditional trades are positioned as a trusted advisor due to their repeat business model and thus can leverage brand reputation to overcome solar hesitancy by the homeowner.
